Front Notes: The replay

Crisis in the developed world proved to be a boon for
investment into Latin America.

But companies and countries in the region are now suddenly
confronted with the prospect that a recovery in the US could
turn out to be to their disadvantage.

The volatility that has roiled global markets in recent
weeks has highlighted how quickly the cycle can turn. It has
come as a rude awakening for Latin borrowers, investors and
policymakers who find themselves, with the prospect of rising
US interest rates, all of a sudden preparing for an end to an
era of abundance.

It’s a movie the region has seen before. In
1994, an abrupt US rate hike triggered a crisis, starting in
Mexico, which...